The RBI has worked to fix the policy’s gaps and weaknesses. Beginning on December 1, REs are required to give customers their original ownership records for both moveable and immovable property within 30 days of the loan’s repayment.
Source: Deccan Herald
These instructions are important in light of the murky circumstances and inconsistent lending practices.For borrowers, who frequently have to run from one obstacle to another and whose complaints sometimes result in arguments or legal action, the new regulations are a comfort.
If the delay is traced to the RE, the RBI has outlined that it will be required to pay Rs 5,000 for each day that passes the 30-day deadline. In the event that the documents are lost, the RE is required to assist the customer in obtaining new papers within 30 days and to cover 50% of the associated costs.
Source: The Economic Times
The RBI has ordered that a proper protocol be established for releasing papers to the legal heirs in event of the borrower’s death after realizing another issue that could result in consumer harassment.
An increase in non-performing assets (NPAs) is a result of ambitious expansion strategies and the evergreening of loans, RBI Governor Shaktikanta Das warned banks against in May. In loan evergreening, banks prevent defaults by extending new loans to debtors, preventing the recording of problematic loans as NPAs. Das deserves praise for his efforts to close the governance practices gaps in banks.
What do you think about this? Comment below.
